According to an industry expert at SiGMA, GamCare may lose its funding under current white paper proposals in the UK. [Image: Shutterstock.com]

An industry insider at this week’s SiGMA gaming conference in Malta has warned that the UK charity GamCare could lose its funding as a result of new gambling sector laws.

Representatives for 888 Holdings, the Betting and Gaming Council, and Regulus Partners all spoke during ‘The Long-Awaited White Paper on Gambling Reform in Britain’ panel on Tuesday. They provided their insight into the ongoing consultation process on the white paper, which will redefine the UK’s gambling laws.

there is no logic behind it”

Dan Waugh, Partner at global strategic advisory business Regulus Partners, said that the most concerning of the proposals are the financial risk checks and mandatory levy. Regarding the latter, he argued “there is no logic behind it” since we do not impose a similar addiction levy on alcohol or fast food industries. He also explained that it could end up entirely defunding long-running gambling charity GamCare.

Under the current system, UK gaming companies voluntarily contribute to GambleAware, an independent charity that funds GamCare and other organizations including the NHS. The new rules, however, would create a mandatory levy expected to raise $100m each year directly for the NHS. According to the UK Government, it intends to make the NHS “the main commissioner” of gambling addiction treatment.

“I don’t believe the levy has been seriously thought through,” Waugh explained. “GamCare has been the largest treatment provider in Britain for numerous years. Under the new guidelines, it could be entirely defunded and lose the ability to treat the people it’s currently treating.”

In response, panel host John Hagan, Managing Partner of Harris Hagan, said that it would be “extraordinary” if GamCare didn’t have a role in treatment at the end of the white paper process.